ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
09.07.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Compensation and Six Sigma Black Belts

Author: Peter Peterka Author Ranking Blue | Posted: 10-09-2005 | Comments: 0 | Views: 142 | Rating:  (60) Article Popularity - Blue (?) Got a Question? Ask.
Sign Up Now!

One of the more ambiguous elements of a Six Sigma project is the level and type of compensation the organization should give to its Six Sigma leaders and team members. On the one hand, setting compensation is not an integral part of any stage of a Six Sigma project; on the other hand, compensation is an important instrument to build loyalty and a sense of accomplishment that is a crucial element to the organization's Six Sigma success. While there are no hard and fast rules for compensation for Six Sigma leaders and team members, there are some good ways to think about how to productively provide compensation to your people.

Black Belts are the key change agents for the Six Sigma process. They have an important role and should be compensated accordingly. If your organization is large enough to have people dedicated full-time to leading Six Sigma projects, their base pay should be in the top of your organization's range for their level of management. If your organization is asking a manager to also devote part of his or her time to leading a Six Sigma project, you need to find some way to compensate them for their extra efforts. In addition to base pay, you can find creative ways for recognition for completed projects. Black Belts should receive some special and public recognition for their efforts, whether it is dinners, award ceremonies, plaques, etc. Whatever fits best with your organizational culture. Such recognitions should not be strictly limited to Black Belts either, as acknowledging the achievements of all who participated in and benefit from the Six Sigma project should receive some sort of recognition to boost morale.

Monetary bonuses are another way to compensate people for successful Six Sigma projects. Since Six Sigma projects are about helping the organization make more money it makes sense to share some of the cost savings from Six Sigma projects with the Six Sigma team. Develop a structured, team-based process improvement bonus system that will appropriately benefit each worker in the organization. As measurable and lasting improvements are made to processes, it is appropriate to share a part of the financial gains with employees. Just be sure there is a formal performance appraisal system that will identify what is to be accomplished, what success looks and feels like, and how an employee will be compensated, and that this is fully communicated to everyone. Such an organizational goal-sharing program will effectively support Six Sigma efforts. Being able to link compensation to Six Sigma implementation is much easier in a small company compared to a larger company.

Bonuses can also be paid to Black Belts, but with differences due to their unique status. Instead of paying bonuses to Black Belts as a share of actual process improvement, pay them bonuses related to specific project goals. There is a danger in directly tying their bonus with a share of the actual improvements as they may be motivated to inflate or misconstrue actual gains. That still leaves you with many concrete project milestones that can be the basis for their compensation.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/business-articles/compensation-and-six-sigma-black-belts-471.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:
Peter Peterka is President of Six Sigma http://www.6sigma.us and has over 15 years as Six Sigma Black Belt http://www.6si gma.us/six-sigma-black-belt.php with a variety of organizations.
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

Managing Teams And Six Sigma
By: Peter Peterka | 18/09/2005 | Management
Is the organization that benefits from Six Sigma, it is the organization that truly manages Six Sigma. Yet, that management must be led by specially trained individuals. Success.

Coaching and Performance Management
By: Magella. Sergerie, M.ed, | 28/09/2005 | Careers
When Performance Management replaced Performance Evaluation in Organizations, it was going to give leadership a different definition and much more credibility and accountability to all members of a team. Instead of havin...

Find Your Happy Medium
By: Angela Leon | 12/05/2008 | Home and Family
It is not necessary to keep everything perfect. There is a happy medium between living and organizing for every family. If you look for functionality and not perfection you will find your families happy medium.

Communication In Six Sigma
By: Peter Peterka | 31/01/2006 | Management
Deploying Six Sigma means entering a period of significant change in your organization. Productivity and morale almost always suffers in times of great change.

Is it a Fun Family Project or a Three Ring Circus?
By: Angela Leon | 20/05/2008 | Home and Family
There is a fine line between a fun family project and a three ring circus.

Company Politics And Six Sigma
By: Peter Peterka | 02/02/2006 | Management
No grouping of human beings is without some amount of politics. Managing deployment of Six Sigma in your organization will unavoidably run into some personal issues and conflict.

School is Out! How Much is This Going to Cost Me?
By: Angela Leon | 02/06/2008 | Parenting
For a child summer represents swimming, playing, vacationing, and most importantly no school. For a parent, summer represents more pressure with the need for a babysitter, lunches, kids asking for vacations, neighbor kids, car pooling, and more stress. Regardless of your situations, summer represents more fun, more expenses, and more time with your kids. This brings up the question “how can we let everyone have a good summer, without breaking the bank?”

How Green Belts Can Help Ensure The Success Of Six Sigma Projects
By: Tony Jacowski | 19/06/2008 | Management
It's usually professionals such as the Black Belts who take all the credit for a successful Six Sigma implementation project. This is, however, quite unethical - as it undermines the effort put in by other stakeholders, especially the Green Belts. In reality, all the hard work is done by them.

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

What type of paint (preferrably black in colour ...
By: Aruna Mahesh | 30-06-2008
What type of paint (preferrably black in colour)can be used for the cover of a portable furnace?

What Affect does UC Comp AND Severance Payments have on SSI payments
By: chrisper67 | 30-06-2008
I have recently verified I can receive Unemployment Compensation while collecting a Severance from my former employer. Currently I have two sons receiving SSI payments. My question: If I collect both UC Comp AND Severance payments, will that affect the SSI payments to my sons.

Celebrity to father your children?
By: AllisonG | 30-06-2008
If you could pick one celebrity to father your children, who would it be?

I was laid off and received a severance package ...
By: Angie | 29-06-2008
I was laid off and received a severance package for 11 months, i am 58 . I am asking if I retire at the end of my severance package, I will only collect 400.00 a month because I am only 58 1/2 at that time, can I collect unemployment while I am collecting my little pension? I will not be old enough to collect my soc sec or 401k till 59 1/2 and 62

Elements of National Service Training Service
By: ejean | 29-06-2008
what are the elements of National Service Training?

Welcome file
By: divya_sl | 27-06-2008
Is there any other way to specify Welcome file other than specifying in web.xml?

Q&A Powered by:
Powered by Yedda 

Latest Business Articles

Undersell, Overdeliver
By: Charlie Karlheinz Lang | 08/07/2008
This article shows us how salespeople can undersell and overdeliver to get more success in sales.

Would You Like to Take the Pain Out of Giving Constructive Feedback? the Seven Steps
By: Julie Ellis | 08/07/2008
Pretty much all of us feel uncomfortable about giving feedback. If we don't know how to do it effectively, we can either avoid it or make a mess of the communication. This article gives the 7 steps in how to give constructive feedback in a way that works. It begins by asking us first to take responsibility for our own reactions so that they don't get in the way and then gives a step by step guide to achieving a positive outcome.

Are You a 'people-friendly' Manager?
By: Pat Brill | 08/07/2008
A "people friendly" environment reduces stress, decreases turnover, and supports higher levels of performance with employees. Organizations today are addressing the "people friendly" environment with additional programs that support work-life balance. And..that is great.

Locate Employment 101
By: Ed Opperman | 08/07/2008
Most people find services more convenient and easy. It takes away much of the arguments that come along with serving papers or repossessing property.

Connaught Opens Fund For Investors Tired of Products
By: Mark Smalls | 08/07/2008
Connaught Asset Management has launched a Guaranteed Low Risk Income fund, which company executives said is aimed at investors who have lost their appetite for investment products. It promises to pay a guaranteed annual return of at least 8.15 per cent, by investing in low-risk, short-term bridging financing. Investors who put in...

Capita Buys up Land For Future Planning
By: Nigel Walter | 08/07/2008
Funds seeking the UK sites most likely to obtain planning permission for buildings. Capita is to launch two funds to snap up land that could be used to meet the government's target to develop 4.2m homes over the next 20 years. Connaught Asset Management has been appointed by Capita as the specialist...

How to Expand an Office Cleaning/ Janitorial Business
By: Brent Wale | 08/07/2008
If you own and operate an office cleaning/ janitorial business, or looking to start one,Here's a way you can explode your income in your office cleaning/janitorial business without even getting any new accounts.

Feedback as a Competitive Sport
By: Jennifer Selby Long | 08/07/2008
A common roadblock to success is the use of feedback to win, to dominate the person seen as the opponent. Dealing with this can affect your happiness and your sanity. Organizations in which leaders and managers routinely share high-quality feedback are easier to scale and have fewer nagging problems and less operational drag.

More from Peter Peterka

Six Sigma Is About More Than Just Number Crunching
By: Peter Peterka | 28/09/2005 | Business
Top executives who know only that Six Sigma is famous and popular have called for the implementation of Six Sigma programs, and, of course, want to see numbers. They may become very enamored with the copious numbers that...

Does Six Sigma Need To Have The Support Of Upper Management?
By: Peter Peterka | 24/09/2005 | Business
Understand the value of investing the extra time and effort required for quality improvement? Such an experience is certainly not uncommon. You really know the value of upper.

Why Six Sigma Will Outlast Total Quality Management
By: Peter Peterka | 24/09/2005 | Business
Companies. Six Sigma can do more. TQM is the development, deployment, and maintenance of systems related to quality-producing business processes. TQM is a strategic approach.

Managing Teams And Six Sigma
By: Peter Peterka | 18/09/2005 | Management
Is the organization that benefits from Six Sigma, it is the organization that truly manages Six Sigma. Yet, that management must be led by specially trained individuals. Success.

Why Six Sigma Will work in Service Environments
By: Peter Peterka | 14/09/2005 | Business
Retail companies, and hospitality organizations have a harder time applying Six Sigma principles. However, the core principles of Six Sigma allow it to cost-effectively.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below